BANK FUNDS TRANSFER PRICING (FTP)
Optimizing internal fund allocation and improving financial performance in banks
Course Schedule
| Date | Venue | Fees (Face-to-Face) |
|---|---|---|
| 05 – 06 May 2026 | Doha, Qatar | USD 1995 per delegate |
Course Introduction
Effective management of funds within a bank is essential to ensure profitability, regulatory compliance, and sound risk management. Funds Transfer Pricing (FTP) is a key technique that enables banks to allocate the costs and benefits of funding accurately to different business units, products, and services. This allows organizations to evaluate performance, optimize balance sheets, and make strategic pricing decisions.
This intensive two-day program provides participants with comprehensive insights into FTP methodology, regulatory frameworks, and practical implementation strategies. Participants will gain hands-on skills to apply FTP models that enhance decision-making, profitability analysis, and risk-adjusted performance measurement.
Course Objectives
By the end of this course, participants will be able to:
- Understand the principles and purpose of Funds Transfer Pricing (FTP)
- Develop and implement an FTP framework for their organization
- Allocate costs and benefits of funding to products, business units, and branches
- Align FTP with risk management, ALM, and profitability analysis
- Interpret FTP reports for performance evaluation and decision-making
- Ensure compliance with regulatory and accounting standards
- Apply best practices in FTP modeling and reporting
Key Benefits of Attending
- Gain practical expertise in designing and implementing FTP models
- Understand the link between funding costs, profitability, and risk
- Improve transparency and internal performance measurement
- Learn to align FTP with regulatory expectations
- Enhance decision-making for pricing, capital allocation, and balance sheet management
- Network with banking professionals and exchange best practices
Intended Audience
This program is designed for:
- Treasury, ALM, and finance professionals
- Risk management officers
- Bank accountants and financial analysts
- Branch managers and product managers responsible for profitability
- Regulatory compliance and internal audit personnel
Individual Benefits
Key competencies that will be developed include:
- Deep understanding of FTP principles, methodologies, and regulations
- Ability to calculate and allocate funding costs and benefits
- Enhanced analytical skills for profitability and performance assessment
- Practical skills in FTP reporting and interpretation
- Knowledge of integrating FTP into decision-making and risk management
- Capability to improve internal fund pricing and balance sheet optimization
Organization Benefits
Upon completing the training course, participants will demonstrate:
- Improved internal fund allocation and cost management
- Enhanced risk-adjusted profitability measurement
- Better transparency in product and branch performance
- Alignment of FTP with strategic and regulatory requirements
- Strengthened financial decision-making processes
- Optimized balance sheet and resource allocation
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
- Strategy Briefings – Key principles of FTP, cost allocation, and internal pricing
- Case Studies – Real-world examples of FTP implementation in banks
- Workshops – Hands-on exercises in calculating FTP and interpreting results
- Peer Exchange – Group discussions on challenges and solutions in FTP management
- Tools – Templates and models for FTP calculation, reporting, and analysis
Course Outline
Detailed 2-Day Course Outline
Training Hours: 7:30 AM – 3:30 PM
Daily Format: 3–4 Learning Modules | Coffee breaks: 09:30 & 11:15 | Lunch Buffet: 01:00 – 02:00
Day 1: Fundamentals of Funds Transfer Pricing (FTP)
Module 1: Introduction to FTP (07:30 – 09:30)
- Concept and objectives of FTP
- Importance for profitability and risk management
- Regulatory requirements and accounting standards
Module 2: FTP Methodologies (09:45 – 11:15)
- Different FTP approaches (pooling vs. matched maturity)
- Cost of funds allocation techniques
- Setting FTP rates for products and units
Module 3: Risk and Performance Integration (11:30 – 01:00)
- Linking FTP with ALM and risk metrics
- Adjusting for liquidity and interest rate risk
Module 4: FTP Workshop (02:00 – 03:30)
- Practical exercises on rate calculation and allocation
- Case study: Impact on profitability
Day 2: Implementation, Reporting, and Strategic Use
Module 1: FTP Reporting and Analysis (07:30 – 09:30)
- Generating FTP reports
- Interpretation for management and regulators
Module 2: FTP in Decision-Making (09:45 – 11:15)
- Pricing of products and services
- Strategic allocation of resources and capital
Module 3: Challenges and Best Practices (11:30 – 01:00)
- Common pitfalls in FTP implementation
- Enhancing transparency and accuracy
Module 4: Workshop & Course Review (02:00 – 03:30)
- Hands-on application exercises
- Group discussion and problem-solving
- Final Q&A and wrap-up
Certification
Participants will receive a Certificate of Completion in Bank Funds Transfer Pricing (FTP), validating their expertise in implementing FTP frameworks, internal fund allocation, and performance evaluation in banking organizations.